Northern Arc CapitalNSE:NORTHARC -2.31%37 ROE % is 13.61% as of Mar. 2026, which is 24% above its 10-year median of 11.02. GuruFocus rates NSE:NORTHARC with a GF Score™ of 37/100. The stock has 7 warning signs investors should review. Among 529 Credit Services companies, Northern Arc Capital ranks better than 67.11% on this metric.
The historical rank and industry rank for Northern Arc Capital's ROE % or its related term are showing as below:
NSE:NORTHARC'
s ROE % Range Over the Past 10 Years
Min: 4.84 Med: 11.02 Max: 14.44
Current: 11.08
During the past 6 years, Northern Arc Capital's highest ROE % was 14.44%. The lowest was 4.84%. And the median was 11.02%.
NSE:NORTHARC's ROE % is ranked better than 67.11% of 529
companies
in the Credit Services industry
Industry Median: 6.61
vs NSE:NORTHARC: 11.08
Northern Arc Capital (NSE:NORTHARC) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Northern Arc Capital's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northern Arc Capital ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Northern Arc Capital's ROE % distribution charts can be found below:
* The bar in red indicates where Northern Arc Capital's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Northern Arc Capital (NSE:NORTHARC) has a ROE % of 13.61% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Northern Arc Capital and its competitors. This is 24% above median its historical median of 11.02. Over the past decade, Northern Arc Capital's ROE % has ranged from 4.84 to 14.44. According to the industry distribution chart, Northern Arc Capital ranks #174 out of 529 companies in the Credit Services industry, placing it in the top 32.9%.
Is Northern Arc Capital's ROE % too high?
Northern Arc Capital's current ROE % of 13.61% is 24% above median its 10-year median of 11.02. Over the past 10 years, this metric has ranged from a low of 4.84 to a high of 14.44. The Credit Services industry median ROE % is 6.61. Northern Arc Capital's value of 13.61% is 105.9% above this industry median. Based on the distribution chart, Northern Arc Capital ranks #174 out of 529 companies in the Credit Services industry, which is above the industry midpoint. Overall, Northern Arc Capital has a GF Score™ of 37/100, reflecting its overall financial health beyond just this single metric.
How does Northern Arc Capital's ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Northern Arc Capital ranks #174 out of 529 companies for ROE %. This puts Northern Arc Capital in the upper half of its industry. The industry median ROE % is 6.61. Northern Arc Capital's value of 13.61% is 105.9% above this benchmark. Historically, Northern Arc Capital's own ROE % has ranged from 4.84 to 14.44 over the past decade. While the company's 10-year median is 11.02 vs. the industry median of 6.61, Northern Arc Capital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northern Arc Capital's current ROE % of 13.61% is 105.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Northern Arc Capital and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northern Arc Capital's current ROE % is 13.61%, which is 24% above median its own 10-year median of 11.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Arc Capital stock overvalued right now?
Northern Arc Capital (NSE:NORTHARC) has a current ROE % of 13.61%. The current ROE % is 13.61%, which is 24% above median its 10-year median of 11.02 and 105.9% above the Credit Services industry median of 6.61. Northern Arc Capital's overall GF Score™ is 37/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Northern Arc Capital (NSE:NORTHARC), the current ROE % is 13.61% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Northern Arc Capital Ltd is a platform in the financial services sector set up to cater to the credit requirements of households and businesses by providing access to debt finance. It is principally engaged in portfolio management to provide liquidity and develop access to debt-capital markets for institutions, and providing loans for personal, business, education, and mortgage purposes to individuals by setting up microfinance institutions, online debt trading platforms, and alternative investment funds. The group has three reportable segments: Financing activity, which generates maximum revenue; Investment advisory services; and Investment management services. Geographically, it operates only in India.
37GF Score
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